Three aspects that gives a short signal on the pair.
The first being the pair completes a full AB=CD pattern with giving a short signal to catch a good number of pips on the retracement back to .382 or probably even .5 of CD.
Second to back the short signal is the price has just hit the resistance on the daily chart evidencing a neat rebound of the level.
Third is the price action. As we concentrate on the impulse moves, each impulse move has gotten weaker than the previous with the counter trend players pushing the price deeper against the main trend on every retracement. This is observed on the second impulse move where the pair moved up strongly and was pulled back down as strongly threatening a hundred percent retracement.
A short on the pair with targets at .382 and .50 of CD with stops above D gives a good risk to reward ratio.
The first being the pair completes a full AB=CD pattern with giving a short signal to catch a good number of pips on the retracement back to .382 or probably even .5 of CD.
Second to back the short signal is the price has just hit the resistance on the daily chart evidencing a neat rebound of the level.
Third is the price action. As we concentrate on the impulse moves, each impulse move has gotten weaker than the previous with the counter trend players pushing the price deeper against the main trend on every retracement. This is observed on the second impulse move where the pair moved up strongly and was pulled back down as strongly threatening a hundred percent retracement.
A short on the pair with targets at .382 and .50 of CD with stops above D gives a good risk to reward ratio.